iva and payplan

debtiva

I am trying not to panic, but i still am, its helping read other experiences though.
the trouble with an iva for me is that i am self employed so payplan said it would need to go through they bespoke service they did give me a name but i can't remember although they said it was all still part of payplan, i am waiting for them to call so i can see them face to face.

I am just worried if i am short one month due to being self employed but payplan have said i can pay less one month and then more the others, to be honest i don't want to really do an iva, i don't want to lose my house or have to remorgage after 4 years as i will really be no better off.

Its just a worry with a dmp it sounds like i will still be hassled with creditors and poss still get ccjs and baliffs which is not at all what i want.

i rang payplan today to change it to a dmp but they have now forwarded to the iva department who will have to forward it back to dmp................its all a headache, i feel crap can't sleep as am so worried about everything.

Payplan have said its my choice which way i go either bankrupt which is a NO!!! iva or dmp and like i say i have never not paid any debt or fallen behind and dont' know which one to chose which is where i need you guys to help please.

i have about 12 creditors i cannot pay as of this week and am frantic with worry, it sounds like its going to take a while before payplan can help due to xmas so do i need to write to all these creditors with a token payment, what do i say when they start ringing me???

foggybrain what was your experience as you say its not the norm

Charco_2

Ach Debtiva, you sound to be very flustered. I'm not sure this has been explained to you very clearly.

Please speak to someone else! A DMP would be the equivalent to a life sentence!

If you're short one month in your IVA it wont matter, it's not that inflexible. There are companies that specialise in IVAs for self employed.

As long as your IP is confident that you are trying your best to repay what you can then you'll be okay. You can ask for a payment holiday, you can reduce your monthly payments, you can save up if you have little extra some months to give yourself a contingency...

As for your home, you will not be expected to sell or lose it. You will have to try to remortgage (or aquire a secured loan for the amount of equity) which it is unlikely you will find given the state of the economy and the fact that you'll still be in your IVA. You could see if a friend or family member would offer you a small loan to address the equity or you could extend the IVA by 12 months.

Remember realisable equity should be calculated as 85% of the value of your home minus the outstanding mortgage. If you have no realisable equity then you will simply end your IVA after five years!

debtiva

Hi,

ok i think i will do the face to face with payplan about an iva, my present mortgage is 206500 and my house is worth 245000 so not much equity there! just no one knows what will happen in 5 years house prices should go up .

so what do i need to say to the creditors that phone in the meantime until an iva is set up? do i tell them that i cannot afford to pay or that i am dealing with payplan?

will i need to send them all a letter?

How likely is it that an iva is rejected?

Charco_2

An IP will not pursue an IVA if he doesn't think it has a strong chance of being accepted. It takes the same amount of time and effort and resources to draft a successful case as it does for a rejected case but he will not be paid for a rejected case so it actually costs him.

If you insist on continuing with Payplan i just hope that you do not inherit or win a large sum of money. Any IP of course will have to see that you pay back as much as you can afford and that could mean your debts in full... only Payplan will charge you a further 25% for the privilege!

Explain to any creditors that contact you that you are in financial difficulties and are considering your options. You are currently talking to Payplan and CCCS about DMPs and IVAs and that your creditors will hear from you soon. You are not in a position to make even token payments but you hope to ave your situation sorted soon.

If you're lucky they will make a note of it and agree to not contact you again for one month, if you're not they will keep insisting on some form of payment. You can however insist that all correspondence is now to take place in writing... if you are having problems from your creditors, there are letters you can send (the debt free wannabe board on this website is quite useful for that sort of thing!)

FoggyBrain_2

Debtiva, my experience, so far, has been all good ( apart from being in the pickle in the first place!). I just explained, as Charco says above, that I am proposing an IVA. All they wanted were details of the company I was using and they said they'd put a hold on all calls for 30 days, by which time it should all be sorted -- the AA ( my major creditor ) even wished me luck and asked me to contact them if I needed any advice.

I didn't send out any letters, just dealt with calls as they came in. I haven't made any token payments (on the premise that final figures will be provided to my IP and further payments will confuse things) You also ought to avoid being "forced" into paying one and not the other, as you should not seem to be favouring one creditor over another.

I realise you don't want to do an IVA (none of us do / did) but, to my mind, it ia far better than a DMP -- which, again as Charco says, can drag on forever, and at any time any of your creditors can opt out and demand repayment. An IVA at least sets it in formal fashion and everyone knows where they stand. You won't lose the house ... 9 times out of 10, if there is equity (which it will be unlikely you'd be able to release) it is dealt with by adding a year to the IVA term.

themightywhites

I have completed, July 2010, an IVA through Payplan. They got it through at a dividend of only 18p. I always found them helpful and professional and at each annual review my payment was never increased (TIP save a copy of each one so you can refer to them later). I can't remember exactly how competitive or not their fees were, but reasonable compared to others I think at the time. But for me they never gave me any hassle, were always polite, helpful and prompt so I was very happy with them. Good luck.

nogoodwithdosh

We were originally going to go with Payplan because we thought they would be our best option as we were led to believe that they were a charity.
We didn't find them very useful to us as we didn't have much disposable income so they said we should enter into a DMP first then when my wife got a job they might be able to put forward an IVA
My wife has been looking for a job since the day she was made redundent 18 months ago.So we would of been in a DMP for a long time as there aren't many jobs to be had. It would of taken us 15 years to pay off our debts if the credit company's didn't add any interest on,which of course they would of done.So there would of been no end to our troubles.

We contacted a firm called Mc Cambridge Duffy and was so impressed with them that I vowed that I would praise them whenever I got chance.We contacted them and they said that they would propose an IVA for us just on my wages.It took between 3 to 4 weeks from start to finish . They are so efficient and professional. We have made 2 payments into our IVA now and the weight lifted is incredible.
58 payments to go compared with years and years on a DMP.
So for us Payplan was no good at all

nogoodwithdosh

debtiva

I know how worried you are, I remember that sick feeling in my stomach when I added my debts up, and reality kicked in.The sick, sick feeling and the fear that there was no way out. To be honest a lot of dark thoughts crossed my mind on that first night.
When we spoke to the above firm, things moved so quickly, the relief came sooo fast
Please just phone them tomorrow and speak to them. You don't have to go with them.Don't just go with Payplan because people say they are a charity . Speak to someone else.
My thoughts are with you because I know how bad it feels.
We hadn't missed any payments when we got our IVA and we never had any threatening letters and things moved so quickly that we didn't need to send token payments.
I think you will be pleasantly surprised.We got approved at 15p in the pound
good luck

FavDaughter1

Hi i know just how you feel. things "blew up" for me in October,i didn't know untill that point that we were in such a mess(my hubby did all the banking).

you need to get a new bank account- a basic one away from creditors as if overdrawn at the bank they can claim money back at any time,others will advise, we chose The Co Op, that was one of the very,very first things we were told to do- It was very good advice! do it before any creditors get an idea there's a problem! we just took photo id into a branch and they did it there &then, sometime you need a appointment, they didn't ask any questions we just filled a form in.

we read up on the iva reviews - can someone post the link? and spoke to 2 companies before choosing.

take some time to read through the board. people are very supportive,post if you're told something your'e not sure about. Charco is very good.

I've not slept for weeks,the stress is dreadful,arguments are awful,but dealing with this is best,debt will grow if you leave it. you are doing the right thing x

TakeittotheLimit.

Payplan have been fine with me,I'm half way through the IVA,never had a problem with them.
I was orginally with CCCS doing a DMP (after they recommended doing it over an IVA)it would have taken me nearly 21 years to pay off my debts!
I was in the DMP for about 11 months and most of the creditors kept adding interest and giving me hassle,they would stop charging interest for a bit then suddenly I'd get my monthly credit card statement and bingo interest on again!
When I contacted Payplan it only took 5 weeks before my IVA was set up and I ended paying less than I was with the DMP.:T
Entering into an IVA is a big thing however and you have to make sure you get your income and expenditure right,it's no use putting lesser figures down just to get your IVA approved as you will find it tough meeting your IVA payments later on.
Whatever you choose it's better moving to a bank you don't have any debts with..i'm another Co-op fan,set up my account easy and quickly.
My only regret is paying 11 payments to the DMP,I'd have been nearer to being debt free but will hopefully get there eventually.
Good luck in whatever you choose.:beer: